Glossary

Distributed Ledger

Plain-language definition Crypto glossary

Key takeaways

A distributed ledger is a record of data, such as transactions, that is shared and kept in sync across many independent computers instead of living in a single central database.
Each participant holds a copy of the ledger and a consensus process keeps every copy consistent as new entries are added, with no single party controlling the master copy.
Distributing the ledger removes the single point of failure and control found in traditional databases, making records harder to tamper with or censor.

Definition

A distributed ledger is a record of data — such as transactions — that is shared and kept in sync across many independent computers, instead of living in a single central database.

How it works

Each participant holds a copy of the ledger, and a consensus process keeps every copy consistent as new entries are added. A blockchain is the best-known type of distributed ledger, organising data into a chain of cryptographically linked blocks, but other structures exist too. The defining feature is that no single party controls the master copy.

Why it matters

Distributing the ledger removes the single point of failure and control found in traditional databases, making records harder to tamper with or censor. This is the core idea that makes cryptocurrencies and many enterprise blockchain projects possible.

Example

Every full node on a network like Bitcoin keeps its own copy of the distributed ledger and checks new transactions against it.

FAQ

Frequently asked questions

Is a distributed ledger the same as a blockchain?

A blockchain is the best-known type of distributed ledger, but it is not the only one. A blockchain organizes data into a chain of cryptographically linked blocks, while other distributed ledgers use different structures; what they share is that no single party controls the master copy.

Why use a distributed ledger instead of a normal database?

A traditional database has a single central copy that one party controls and that forms a single point of failure. Distributing the ledger across many independent computers removes that single point of control, making records harder to tamper with or censor.

How do all the copies stay in sync?

A consensus process keeps every participant's copy consistent as new entries are added. This shared agreement is what lets many independent computers maintain one trustworthy record without a central authority.